SRI LANKA NEWS
(AUGUST 2025)
Compiled by Victor Melder
U.S. President Donald Trump has signed an executive order reducing import taxes on goods from Sri Lanka to 20%. This is a big drop from the 44% rate he announced in April, the White House said late Thursday. Back in April, Trump introduced high tariffs as part of what he called “Liberation Day” to protect the U.S. economy. At that time, Sri Lankan exports were hit with a 44% tax. In July, this was reduced to 30% in a letter sent to Sri Lankan President Anura Kumara Dissanayake. Now, it has been further lowered to 20%. The U.S. is changing its trade rules again. Countries that buy more from the U.S. than they sell to it will continue to face a 10% import tax. But countries that sell more to the U.S. than they buy like Sri Lanka will now face a 15% minimum rate. However, Sri Lanka’s new rate of 20% is lower than what was planned before. This decision is expected to help Sri Lankan businesses that export goods like clothes and tea to the U.S., as they were worried about the earlier higher taxes. (Daily Mirror, 1.8.2025)
Cancer incidence in Sri Lanka is rising at an alarming rate due to a combination of aging population, unhealthy lifestyles, environmental pollution, and limited access to treatment in some provinces, said Dr. Nadarajah Jeyakumaran, Consultant Clinical Oncologist at the National Cancer Institute, Maharagama. He stated that the trend mirrors a global pattern, where improved life expectancy has led to a steady increase in non-communicable diseases (NCDs), including cancer. Dr. Jeyakumaran pointed to a range of man-made causes accelerating the cancer burden. “What we eat, drink, and inhale is increasingly harmful. Our food is adulterated with pesticides and chemicals. The air is polluted with dust, microplastics and industrial waste, especially in urban areas. Even our water contains unsafe levels of nitrates due to excessive use of fertilizers,” he explained. He said Sri Lanka’s dietary habits, lack of exercise, and rising obesity especially among adolescents, are also contributing factors. “Children are now more sedentary, playing computer games instead of engaging in physical activity. They go from school to tuition without any time for outdoor play. This lifestyle is directly linked to obesity and cancer.” Among males, oropharyngeal (mouth and throat) cancer tops the list, driven largely by betel nut chewing, smokeless tobacco, smoking, and alcohol. “Despite regulations, smoking is still on the rise, especially in rural areas and among the working-class population,” Dr. Jeyakumaran said. For females, breast cancer remains the most common, followed by thyroid cancer. “Thyroid cancer has gone up due to over-diagnosis. A small lump prompts an ultrasound, then a biopsy, and that gets diagnosed, even when the condition may not be aggressive,” he said. Furthermore, he noted that cervical cancer, once the second most common cancer among women, has declined thanks to better early detection and screening programmes. However, a more concerning trend is the sharp rise in colorectal cancer, now the third most common cancer among both sexes. “This is a westernized cancer. Our diet is now more fat-heavy, and people are physically inactive. Obesity is a major driver. These habits are creeping into rural communities as well,” he warned. “Cancer is not always a death sentence. If people avoid risk factors, maintain healthy habits, and come for checkups early, we can often cure them. But if they delay, we can only offer palliative care. Prevention and early detection are key.” he added. (Daily Mirror, 1.8.2025)
Sri Lanka has welcomed over 1.3 million international tourists so far this year, according to the latest data released by the Sri Lanka Tourism Development Authority (SLTDA).From Jan 1 to July 27, a total of 1,341,953 tourists visited the country, marking a significant milestone in tourism recovery and growth. Indian nationals continued to be the largest group of visitors, accounting for 274,919 arrivals, reflecting the strong ties between the two countries and India’s ongoing popularity as a source market for Sri Lanka. However, visitors from other key markets have also contributed to the robust growth in tourist numbers. Significant arrivals have been recorded from the United Kingdom, Russia, Germany, China, France, Australia, and the Netherlands, with these countries continuing to show a steady interest in Sri Lanka as a prime travel destination.The month of July also saw a surge in visitor numbers, with 173,909 tourists arriving during the first 27 days of the month alone. The highest daily number of arrivals for the month was recorded on July 26, when Sri Lanka welcomed a total of 7,579 visitors, marking a peak in tourism activity. The SLTDA has expressed optimism about the continued growth of the tourism sector, which plays a vital role in Sri Lanka’s economy. Authorities attribute the rise in tourist arrivals to various initiatives aimed at boosting the country’s appeal, including marketing campaigns, the easing of travel restrictions, and ongoing improvements to tourism infrastructure. (Daily Island, 1.8.2025)
The easing of deflationary conditions continued in July 2025, in line with the Central Bank of Sri Lanka’s (CBSL) near-term projections. The CBSL said the deflationary conditions eased for the fifth consecutive month in July, with the year-on-year (YoY) change in the Colombo Consumer Price Index (CCPI, 2021=100) recording a milder headline deflation of 0.3%, compared to the deflation of 0.6% in June 2025. The CBSL said food inflation YoY moderated further to 1.5% in July from 4.3% recorded in June 2025, while non-food deflation YoY continued to ease, recording 1.2% in July 2025 compared to 2.8% in June 2025. On a month-on-month basis, the CCPI decreased by 0.23% in July 2025, for which the food category contributed -0.86 percentage points and the non-food category contributed 0.63 percentage points. Meanwhile, core inflation YoY, which reflects the underlying inflation trends in the economy, accelerated marginally to 1.6% in July 2025 from 1.5% in June 2025. “The latest price trends indicate that the temporary episode of deflation Sri Lanka experienced since September 2024 is about to end. Thereafter, inflation is expected to gradually accelerate towards the target of 5%, with the support of appropriate policies,” the CBSL said. (Daily Financial Times, 2.8.2025)
The Ministry of Defense has announced that a total of 3,504 personnel from the Tri-Forces have been arrested after leaving their posts without authorization. These arrests were made during special operations conducted between February 22 and August 3. Among those detained, 2,937 were from the Sri Lanka Army, while 289 belonged to the Navy and 278 to the Air Force. The ministry further stated that although a general amnesty was declared last year, allowing unauthorized absentees to surrender without penalty, a significant number failed to do so. The current crackdown targets those who ignored the amnesty and continued to evade military authority. (Daily News, 5.8.2025)
Around 63 persons have been arrested for bribery and corruption so far in 2025. This includes 28 state employees, Prime Minister Harini Amarasuriya told Parliament today. She said this is in comparison to 86 persons arrested in 2024. The premier said some seven politicians have been arrested in 2024 while three politicians have been arrested so far this year.(Daily Mirror, 6.8.2025)
Prime Minister Dr. Harini Amarasuriya told Parliament yesterday that 63 individuals, including politicians, their family members and state officials, had been arrested for bribery and corruption during the last six months or so. Her statement coincided with the news that Shasheendra Rajapaksa, had been arrested by the Commission to Investigate Allegations of Bribery or Corruption (CIABOC). His arrest came as no surprise; it had been in the air for months. (Daily Island, 7.8.2025)
A new mobile app has been launched to help the public report real-time sightings of wild elephants, aiming to reduce the human-elephant conflict and enhance safety in affected areas. Speaking to the Daily Mirror, Vinura Abeyrathne, one of the developers, said the app was created to minimize land damage and human casualties by alerting people when elephants are nearby. “About 3,000 people in Sri Lanka are already using the app,” he said. He explained that if an elephant is spotted in a certain area, users can report it through the app, and a notification is sent to others within a five kilometre radius, warning them to stay alert and be cautious. In addition to reporting elephant sightings, the app also allows users to report incidents such as elephant deaths, human deaths related to elephant encounters, property damage, and wildlife crimes. (Daily Mirror, 8.8.2025)
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The national tea sales average in July 2025 increased to Rs. 1,127.60 ($ 3.74), marking a month-on-month (MoM) increase of Rs. 24.33 and $ 0.06 from June’s average of Rs. 1,103.27 ($ 3.68). Although this uptick offers a modest boost to the industry, year-on-year (YoY) comparisons reveal a more sobering picture, with July’s average falling short of the Rs. 1,223.88 ($ 4.03) recorded in July 2024, reflecting a decline of Rs. 96.28 and $ 0.29. Forbes & Walker Tea Brokers said the cumulative national sales average for the year so far stands at Rs. 1,153.07 ($ 3.87), which is Rs. 105.50 and $ 0.24 lower than the corresponding period in 2024, when the average was Rs. 1,258.57 ($ 4.11). The data points to sustained price pressures across the sector, despite occasional monthly gains. An elevation-wise analysis for July 2025 shows mixed performance across different tea-growing regions. High Grown teas recorded a MoM gain of Rs. 38.52 and $ 0.12 but suffered a YoY drop of Rs. 118.01 and $ 0.36, underscoring continued weakness compared to last year. Medium Grown teas showed marginal monthly declines of Rs. 4.48 and $ 0.03, and more substantial drops of Rs. 88.52 and $ 0.26 compared to July 2024. Low Grown teas fared slightly better with a MoM rise of Rs. 19.69 and $ 0.05, yet they, too, fell behind their year-ago counterparts by Rs. 92.76 and $ 0.27. . (Daily Financial News, 8.8.2025)
Around 20,000 children drop out of schools in Sri Lanka every year, Prime Minister Harini Amarasuriya said. “We have a number of issues with regard to education today. A research conducted by my Ministry has revealed that around 20,000 children drop out of schools in Sri Lanka annually. Around 300,000 are admitted to schools annually. Only a portion of students enter university. Some others go abroad for higher studies. We are looking towards addressing these issues,” the Premier said. Cardinal Ranjith stressed the need for an education system which helps a child to make use of his or her inborn abilities and embark on an appropriate career path. “The issue today is that everyone looks for well paid jobs. The other issue is that many do not have technological skills to obtain gainful employment,” he said. (Daily Mirror, 8.8.2025)
Elephant deaths in Sri Lanka are climbing at an alarming rate, with new figures showing dozens killed in just the first seven months of this year. The Department of Wildlife Conservation says 44 elephants have already been shot dead in 2025, showing that the deadly trend of gunfire killings is far from over. Last year, 84 elephants were killed by gunfire, underscoring the ongoing human-elephant conflict and the impact of illegal hunting. According to the department sources, a total of 248 elephants died in 2024 from various causes. These included 38 electrocuted and 13 killed by trains. The overall elephant death toll for the year 2024 was 388. In response, the Ministry of Environment is mulling to launch a special action plan to protect the wild elephant population.The plan includes measures to safeguard well-known elephants such as Kavantissa and tackle the causes behind the alarming rise in deaths. Officials warn that unless strong action is taken, the country’s elephant population will continue to decline at a dangerous rate. (Daily Mirror, 9.8.2025)
Around four elephants have been killed while two individuals trampled to death by wild elephants for the last three days in the Anuradhapura District, Wildlife Authorities said. Anuradhapura Zone Asst. Director, Wildlife Department, W.M.K.S. Chandrasena said that in the latest incident a farmer of Kotawewa in Thalawa who was attacked by a wild elephant yesterday, died at the scene. The victim Nanhamige Disanayake (66) had been watching his paddy field when he attempted to drive away a wild elephant which had roamed into the paddy field. He said on last Thursday, a resident of Huriwewa in Makulewa, H.M.Chaminda Kumara had also been trampled to death by a jumbo.“ Meanwhile the carcasses of two wild elephants were recovered from Wahagahapura forest reserve in Kahatagasdigiliya. They have either been electrocuted or shot dead but it was yet to be established. Another carcasses of about ten year old well grown elephant, which had been electrocuted, was recovered from Penagama area in Pihimbiyagollewa on Thursday. ”He further said the wild elephant under treatment at Ratmale in Horowpathana had died yesterday. He pointed out that the people should take precautions against any possible encounter with wild elephants when traveling through areas frequented by wild elephants. (Daily Mirror, 11.8.2025)
Eighteen-year-old Yevan David has made history by becoming the first Sri Lankan driver to compete in the FIA Formula 3 Championship. David has signed with AIX Racing for the 2026 season, a landmark achievement in Sri Lanka’s motorsport history. The young driver is currently in contention for the Euroformula title, having secured four victories, five other podium finishes and a pole position this season while racing for the dominant Motopark team. He made an impressive debut in the final round of 2024, claiming two wins and a third-place finish. Before stepping into Euroformula, David competed in the Eurocup-3, Spanish F4 and UAE F4 Championships in 2024 — his first full season in single-seater racing after progressing from karting. “I’m proud to be the first driver from Sri Lanka to compete in FIA Formula 3 and grateful for this opportunity,” David said following his signing with AIX Racing. (Daily Mirror, 10.8.2025)
22.4% of children experience loneliness, and among school-aged children (13-17 years), 11.9% suffer from insomnia caused by mental depression. The National Institute of Mental Health says that approximately eight suicides are reported daily in the country. NIMH psychiatrist Dr. Sajeevana Amarasinghe said that in the world suicide statistics, Sri Lanka had been ranked second in the world in 1996, with a suicide rate of 47 per 100,000 population. However, this rate has now decreased to 15 per 100,000, which is considered a significant achievement, he said at a media briefing held by the Health Promotion Bureau last Wednesday. Specialist psychiatrist Dr. Lakmini Magodaratne said that many school children suffer from mental stress due to various reasons, a fact confirmed by a survey conducted last year. According to the survey data, She also mentioned that 18% of children show symptoms of mental depression. Additionally, 7.5% of children have no close friends, and 25% have no one to share their worries with. The psychiatrist explained that various social factors and stress contribute to these problems. While about eight suicide incidents occur daily, only one or two high-profile cases are reported in the media, Dr. Amarasinghe said. He further noted that despite some sensational suicide attempts, the media’s limited coverage on the issue is actually a sign of significant progress.(Island, 11.8.2025)
Sri Lanka’s tourism earnings crossed the $ 2 billion revenue mark in the first seven months of 2025, though July saw a slight decline despite strong visitor arrivals. The latest data released by the Central Bank of Sri Lanka (CBSL) revealed that during the first seven months, the tourism sector has earned over $ 2.03 billion, up 7.8% year-on-year (YoY) compared to the same period last year. However, the figure is still short of the 2018 January-July record of over $ 2.59 billion—the year Sri Lanka posted its highest-ever tourism revenue of $ 4.38 billion. Given the ambitious targets by year-end, the sector faces an uphill battle to meet $ 5 billion in earnings and 3 million arrivals after a mixed performance in the first seven months of 2025. To achieve the $ 5 billion year-end target, Sri Lanka now needs to secure over $ 2.96 billion in the remaining five months of 2025. In July 2025, the tourism industry generated $ 318.5 million, down 3.07% YoY from $ 328.3 million in July 2024, reflecting a slowdown despite the 200,244 arrivals. Nevertheless, compared to June 2025’s earnings of $ 169.51 million, July’s revenue surged by an impressive 88% month-on-month (MoM), boosted by higher average daily arrivals and summer travel demand. Although July’s performance marks a seasonal high for 2025, it remains well below the benchmark set in July 2018, when the country earned $ 408.87 million, a gap of over $90 million, underscoring that full recovery to pre-crisis levels is yet to be achieved. The $ 400.66 million generated in January 2025 is the highest monthly earnings registered since 2020 thus far. Sri Lanka would need to average around $ 593.78 million per month in the next five months to hit its ambitious $ 5 billion target—nearly double its current average. Last week, President Anura Kumara Disanayake addressing Parliament during an adjournment debate on the country’s economic situation expressed optimism, saying, “2025 will become the year with the highest tourism revenue in Sri Lanka’s history.” He also noted that the year has shown promising signs for dollar inflows, foreign direct investment, tourism growth, and export earnings. Industry analysts, however, caution that meeting the record-breaking revenue target will require sustained high-spending visitors and an aggressive push in destination marketing—both areas where Sri Lanka still lags behind competitors (https://www.ft.lk/top-story/Tourism-industry-slams-delays-warns-3-m-visitor-target-unlikely-without-action/26-779622). With the country recently crowned the world’s best island in 2025 by Big 7 Travel, industry champions opined Sri Lanka now has a prime opportunity to capitalise on global attention, provided it matches international interest with decisive policy action. Last week, the Cabinet of Ministers approved the establishment of a Presidential Task Force to drive the rapid and sustainable development of Sri Lanka’s tourism industry, in line with the Government’s policy declaration “A new tourism industry – An attractive destination). Financial Times, 13.8.2025
Workers’ remittances hit a record high for the month of July, surging to $ 697.3 million, registering the highest monthly inflow so far in 2025, the latest Central Bank of Sri Lanka (CBSL) data revealed. The July inflow reflects a robust 23.02% year-on-year (YoY) growth and marks a 9.1% increase compared to June 2025. It is also the fourth consecutive month of record inflows for the year. The July 2025 figure is also the second highest monthly remittance inflow in history, behind $ 708.089 million recorded in 2020. The inflow during the first seven months increased by 19.5% YoY to over $ 4.43 billion, marking the highest cumulative figure in the period since 2020. The year-to-date (YTD) figure also represents a 6% increase compared to the $ 4.18 billion registered in the same period of 2016—the year that holds the record for the highest annual workers’ remittances inflow at $ 7.24 billion. The sharpest post-crisis rebound was in 2023, when workers’ remittances grew by 57% to $ 6 billion, recovering from a 12-year low of $ 3.78 billion in 2022. In 2024, workers’ remittances hit a four-year high of $ 6.57 billion, up by 10.1% from $ 5.69 billion in 2023. This growth was followed by a record wave of people seeking foreign employment after an unprecedented economic crisis.
Historically, the highest-ever annual workers’ remittances were recorded in 2016, whilst between 2014 and 2018, the annual inflows averaged around $ 7 billion, or roughly around $ 600 million per month. (Financial Times, 13.8.205)
A staggering 234 people have died in train-related accidents during the first seven months of 2025, according to the Railway Department sources. The fatalities have been linked to a range of incidents, including falls from moving trains, suicide, walking along the tracks, riding on the footboard, and falling while attempting to board trains. Officials said the vast majority of those tragedies stemmed from public negligence. Sources said that there had been 31 accidents at railway level crossings during the same period. They blamed reckless driving across the tracks for these collisions. (Daily Island, 15.8.2025)
Sri Lanka’s dental experts have sounded the alarm over rising rates of tooth decay, with 63% of preschoolers affected largely due to sugary drinks and biscuits. Speaking at a Health Promotion Bureau (HPB) media briefing on Wednesday (13), HPB Community Dental Specialist Dr. Shanika Mututantri said using fluoride was key to minimising dental decay and maintaining good oral health. She noted that 80% of working-age adults also suffered from dental caries. “Fluoride is the only element known to protect teeth from decay,” she said, warning that many whitening toothpastes erode enamel and could cause serious harm. Family Health Bureau (FHB) Community Dental Specialist Dr. Nimalie Wellappuli stressed that the first permanent molar, which emerges at age six, must last a lifetime. However, children’s diets are causing rapid deterioration. She said fissure sealant treatment could help prevent decay, with school dental clinics already offering it and hospital clinics set to follow. According to the 2015–2016 National Oral Health Survey, 63% of five-year-olds have early childhood caries. An FHB review in 2023 found that 57.3% of Grade One pupils have decayed teeth.(Sunday Island, 17.8.2025)
Sri Lanka’s tea production in July 2025 registered a drop, though cumulative output for the year remains ahead of the past two years, underscoring mixed fortunes for the country’s top agricultural export. Data analysed by Forbes and Walker Research, the production in July stood at 21.36 million kilograms, down 1.83 million kilos from 23.19 million kilos in July 2024. All elevations, except the Low Grown, which registered a marginal 1.11% year-on-year (YoY) increase, recorded declines compared to last year. When measured against 21.57 million kilos in July 2023, the latest figure represents a more modest decline of 0.21 million kilos. Despite the monthly setback, cumulative production for the first seven months of 2025 paints a more positive picture. Total output from January to July 2025 reached 157.12 million kilos, marking an increase of 5.97 million kilos over the 151.15 million kilos produced in the same period of 2024. Compared with 156.23 million kilos in the corresponding period of 2023, this year’s cumulative figure reflects a smaller gain of 0.89 million kilos. Breaking down performance by elevation, all sectors recorded 3.95% year-to-date (YTD) gains compared to 2024. However, against the 2023 baseline, the Medium Grown elevation improved by and green tea registered positive variances, while the High Grown and Low Grown elevations posted declines. (Daily Financial Times, 20.8.2025)
With consumption steadily picking up with interest rates easing, outstanding credit card balances totaled Rs. 160.9 billion in June 2025, up 7.2% from Rs. 150.1 billion in June 2024, latest data from the Central Bank of Sri Lanka (CBSL) showed. Of this, balances on globally accepted cards grew by 7.9% to Rs. 124.8 billion, compared with Rs. 115.6 billion in June 2024. The total number of credit cards in circulation in Sri Lanka increased by 7.9% year-on-year (YoY) to 2,075,744 in June 2025, from 1,923,503 in June 2024. Locally accepted credit cards fell by 9.6% to 9,287 in June 2025, compared with 10,275 a year earlier. In contrast, globally accepted credit cards rose by 8% to 2,066,457 in June 2025, from 1,913,228 in June 2024, continuing a trend of stronger growth in international card usage. Growth in credit card usage and balances came alongside a broader rise in private sector credit, easing interest rates, and a slowdown in Government borrowings. Total outstanding bank loans to the private sector expanded by 18.6% YoY, reaching Rs. 8.2 trillion in June 2025, from Rs. 6.9 trillion in June 2024. Net credit to the Government rose 5.5% to Rs. 6.6 trillion, from Rs. 6.2 trillion a year earlier. Meanwhile, interest rates eased. The average weighted lending rate declined to 11.56% in June 2025, from 12.47% in June 2024, while the average weighted fixed deposit rate fell to 8.52% from 9.9% over the same period. (Daily Financial Times, 23.8.2025)
Former President Ranil Wickremesinghe, currently in remand custody, has been transferred from the Prisons Hospital to the Colombo National Hospital following medical assessments that flagged the need for specialist care not available within the prison system. Wickremesinghe was initially admitted to the Prisons Hospital on the night of August 22, shortly after being remanded by the Fort Magistrate’s Court. Doctors cited high blood pressure and elevated blood sugar levels among his complications. Continuous monitoring led prison medical officers to recommend the transfer, which was approved by Prison Headquarters. Sources also revealed that doctors have requested home-cooked meals for the former president due to his condition. This development follows Wickremesinghe’s arrest by the Criminal Investigation Department (CID) over allegations of misusing Rs. 16.9 million in public funds for a private trip to London in 2023.(Ceylon Today, 24.8.2025)
The Government Medical Officers’ Association (GMOA) has warned that Sri Lanka’s health sector is facing a severe crisis, with more than 2,500 specialists and doctors leaving the country in the wake of recent economic and political instability. GMOA Secretary Dr. Prabath Sugathadasa said there has been no significant decline in the outflow of medical professionals, leading to major challenges in sustaining hospital services and providing adequate healthcare to the public. “Although the GMOA has submitted proposals to the Ministry of Health for a program that would encourage doctors to remain in the country by ensuring economic justice, fairness and a conducive professional environment, the Ministry has yet to initiate a permanent mechanism to safeguard doctors,” Dr. Sugathadasa said. He added that the Ministry’s “short-sighted and inefficient policies” have accelerated the exodus of medical professionals. “While the government and the Health Minister publicly claim that protecting doctors is a policy priority, the Ministry’s actions are driving them away instead of retaining them,” he noted. The GMOA further stressed that it is the responsibility of the Ministry of Health to create a secure professional environment for doctors who continue to serve in the state health system and to ensure legal protection for their service-related duties. (Sunday Mirror, 24.8.2025)
The postal strike continued for the fifth consecutive day on Friday (22). Police protection has been provided to the Colombo Central Mail Exchange. Despite the growing public inconvenience, the striking workers have refused to end their trade union action on conditions laid dow by the Minister of Health and Mass Media, Dr. Nalinda Jayatissa. Minister Jayatissa reaffirmed in Parliament on Thursday (21) that the government would not reverse its decision regarding the fingerprint system and the payment of overtime allowances to postal workers. The postal trade unions have said that their trade strike, based on 19 key demands, will continue. (Sunday Island, 24.8.2025)
Sri Lanka’s export earnings are approaching the US $ 10 billion mark in the first seven months of 2025, with total goods and services exports reaching US $ 9.99 billion, up 7.8 percent from the same period last year. Merchandise exports accounted for US $ 7.8 billion of cumulative earnings, up 7.2 percent year-on-year (YoY), driven by tea, coconut-based products, seafood and apparel.Tea exports rose 8.9 percent to US $ 884 million, with packeted and instant tea performing particularly well, while coconut-based products surged 37 percent to US $ 661 million on a robust global demand and higher value addition. Apparel and textiles, Sri Lanka’s largest merchandise export, recorded US $ 3.08 billion in earnings, up 8.2 percent, supported by shipments to the US, UK and European Union (EU) markets. Services exports contributed US $ 2.19 billion, a 9.9 percent increase over the same period in 2024. ICT/BPM and logistics services led the gains, rising 7.2 percent and 21.2 percent, respectively. The growth highlights the sector’s increasing importance in Sri Lanka’s export portfolio and its role in creating high-value employment opportunities. In July alone, total exports reached US $ 1.64 billion, a 12.7 percent increase from July 2024. Merchandise exports rose 15.4 percent to US $ 1.3 billion, led by tea, which climbed 13.1 percent to US $ 141 million and coconut products, up 63.8 percent on a strong demand for kernel, fibre and shell-based products. Seafood exports surged 78 percent to US $ 39.3 million, while apparel and textiles rose 8.2 percent to US $ 479.9 million. Diamonds, gems and jewelry (estimated) grew 18.5 percent and food and beverages jumped 64.5 percent, led by processed foods. Some segments, however, showed weakness, including spices and essential oils, which fell 39.8 percent and rubber products and electrical components, which posted modest declines. (Daily Mirror, 26.8.2025)
The Central Bank of Sri Lanka (CBSL) said its Land Valuation Indicator (LVI) for the Colombo district rose 11.4% in the first half of 2025 from a year earlier, reaching 256.4 on a base of 2017 H1 = 100, compared with 6.9% year-on-year growth in the first half of 2024. The index increased 8.3% from six months earlier, up from a semi-annual growth of 2.9% in 2H 2024. In annual terms, residential land values rose 14.4% from a year earlier, commercial land values increased 11.5%, and industrial land values rose 8.4%. In 1H 2024, annual growth rates were 8.5% for residential, 8.5% for commercial, and 3.7% for industrial. In semi-annual terms, or compared with six months earlier, residential land values increased 9.9%, commercial land values rose 8.6%, and industrial land values grew 6.3% in 1H 2025. In 2H 2024, the respective semi-annual increases were 4.1%, 2.7%, and 1.9%. The LVI measures bare land values per perch across Colombo’s 13 Divisional Secretariat divisions. It is calculated as a simple average of three sub-indices for residential, commercial, and industrial land compiled from Government Valuation Department data, with index growth tracked annually and semi-annually. The data indicate accelerating land valuations across Colombo, with residential driving growth and commercial close behind. The uniform improvement in six-month growth across segments points to a broad-based upswing rather than a sector-specific move. (Daily Financial News, 28.8.2025)
